Pension for Pensions
The online times published an article today regarding how large companies are screwing people out of early retirement benefits. Its an interesting article for a couple of reasons. First it clearly demonstrates that, left unchecked, companies will screw its employees (and one could argue shareholders) in favor of its over paid executive staff and secondly, what happens when you get laid off.
As a victim of the telecom meltdown, I have some first hand knowledge of what goes on. Millions, and I mean millions of middle class Americans have been laid off over the past four years. If you've never personally experienced it, I can tell you that is a demeaning and lonely experience. The faucet shuts off, but no one plugs the drain...but I digress. As I rebuild my life after 23 years of loyal service to the same group of companies, I am reminded of two very, life affecting, changes: the first is that I will probably never be able to retire like my father was able to and; I will have to cover my own medical insurance if I ever do get to retire. You see, one of things you lose when you get laid off are you retirement medical benefits.
Seeing the way this country is headed, I only take solace in the fact that you, my dear reader, are not likely to have subsidized health insurance either. The trend has been to place more and more of the burden on covering health care premiums with your paycheck. Mine currently runs $650 per month for the two of us and has an annual deductible of $3200. It's basically only good for catastrophic health problems. If I had subscribed to the HMO, it would have cost nearly $900 per month. Now imagine someone who makes $40,000 a year, which works out to about $2300 a month after taxes. Health care would consume nearly half of their take home pay, leaving $1300 for mortgage, car and oh...food. Anyway, the point is that if I could retire ten years from now and had a home to live in, its likely that, with the current direction we're headed, I'm going to need a minimum of $2000 per month just to pay off property taxes and insurance premiums (oh by the way, my property taxes doubled last year to make up for the lack of revenue from reduced federal subsidies and the unemployed). If I had a million in the bank earning 4% annually (not paying down the principle) I may not be able to make ends meet.
Just think...there are millions of Americans out there just like me (or even worse off) that aren't even on anyone's radar screen right now. All I can say is that we probably don't have to worry about baby boomers retiring. A lot of them won't be able to.
As a victim of the telecom meltdown, I have some first hand knowledge of what goes on. Millions, and I mean millions of middle class Americans have been laid off over the past four years. If you've never personally experienced it, I can tell you that is a demeaning and lonely experience. The faucet shuts off, but no one plugs the drain...but I digress. As I rebuild my life after 23 years of loyal service to the same group of companies, I am reminded of two very, life affecting, changes: the first is that I will probably never be able to retire like my father was able to and; I will have to cover my own medical insurance if I ever do get to retire. You see, one of things you lose when you get laid off are you retirement medical benefits.
Seeing the way this country is headed, I only take solace in the fact that you, my dear reader, are not likely to have subsidized health insurance either. The trend has been to place more and more of the burden on covering health care premiums with your paycheck. Mine currently runs $650 per month for the two of us and has an annual deductible of $3200. It's basically only good for catastrophic health problems. If I had subscribed to the HMO, it would have cost nearly $900 per month. Now imagine someone who makes $40,000 a year, which works out to about $2300 a month after taxes. Health care would consume nearly half of their take home pay, leaving $1300 for mortgage, car and oh...food. Anyway, the point is that if I could retire ten years from now and had a home to live in, its likely that, with the current direction we're headed, I'm going to need a minimum of $2000 per month just to pay off property taxes and insurance premiums (oh by the way, my property taxes doubled last year to make up for the lack of revenue from reduced federal subsidies and the unemployed). If I had a million in the bank earning 4% annually (not paying down the principle) I may not be able to make ends meet.
Just think...there are millions of Americans out there just like me (or even worse off) that aren't even on anyone's radar screen right now. All I can say is that we probably don't have to worry about baby boomers retiring. A lot of them won't be able to.
posted by Politico at 1:57 PM
4 Comments:
Excellent points, well stated. I, more or less, am in the same boat as you.
Not only can I not imaging having healthcare when I retire, I have no recognizable pension plan for retirement. In my parents time, it was normal to spend an entire career at one or two companies. Today, it ABNORMAL to be with the same employer for ten years. In fact, over the span of a fifteen year career, I've had four different employers (and am currently in dialogue with number five). I am entitled to a pension for my time with one employer; assuming they are still in business when I retire (around 2030 or so), I'll be able to draw $200 a month from them. Probably the cost of a Happy Meal, assuming I have a coupon.
Don't get me wrong - I dilligently contributed to a 401k whenever it was offered. Lost, to the best of my accounting ability, about $80k when the dot com economy tanked. If I'd dropped $80k on hookers and beer, at least I'd have stories to tell...
Sadly, I've come to realize that aside from winning the lottery, there is no realistic way that I'll ever retire. The best I can hope for is to find a job I enjoy enough to work until I die. I'll let you know when I find it.
This comment has been removed by a blog administrator.
This comment has been removed by a blog administrator.
This comment has been removed by a blog administrator.
Post a Comment
<< Home